Senate Bill S4258

2009-2010 Legislative Session

Provides that employers shall notify employees of potential state and federal earned income tax credits

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 16, 2010	print number 4258b
Mar 16, 2010	amend and recommit to investigations and government operations
Jan 06, 2010	referred to investigations and government operations
Jun 02, 2009	print number 4258a
Jun 02, 2009	amend and recommit to investigations and government operations
Apr 20, 2009	referred to investigations and government operations

Bill Amendments

Original

B (Active)

co-Sponsors

2009-S4258 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S366
2013-2014: S1375
2015-2016: S1322
2017-2018: S4443

2009-S4258 - Summary

Provides that employers shall notify employees of potential state and federal earned income tax credits and delineates the contents, timing and manner of providing notice as well as options available to the employer.

2009-S4258 - Sponsor Memo

                                 BILL NUMBER:  S4258

 TITLE OF BILL :

An act to amend the tax law, in relation to requiring employers to
provide notice of potential eligibility for federal and New York state
earned income tax credits


 PURPOSE :

This bill would require employers to notify employees that they may be
eligible for a State or federal Earned Income Tax Credit (EITC).

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend Tax Law § 606(d)(6) to provide that:
(1) employers with persons in their employ in New York State for whom
they must furnish an annual wage summary must furnish to each such
employee a notice that he or she may be eligible for a State or
federal EITC; (2) the Department of Taxation and Finance shall
promulgate guidance specifying the minimum requirements of such
notice; (3) such notice must be furnished with, or within one week
before or after, the annual wage summary; (4) such notice may be
provided by hand delivery, electronic or regular mail; and (5) the
employer may choose to provide notice only to those employees whose

gross incomes do not equal or exceed $60,000, or the maximum income at
which an employee may be eligible for the EITC, whichever is higher.

Section 2 of the bill would provide for an effective date of January
1, 2010.

 EXISTING LAW :

26 U.S.C. § 32 authorizes a federal EITC for eligible individuals and
sets forth the amount of the credit.

Tax Law § 606(d) authorizes a State EITC for individuals who are
eligible for a federal EITC pursuant to 26 U.S.C. § 32, and provides
that the State EITC will be calculated at 30% of the federal EITC.

Tax Law § 606(d)(6) provides that the Commissioner of the Department
of Taxation and Finance must make efforts at least every three years
to notify individuals of their potential eligibility for an EITC.

 JUSTIFICATION :

The federal EITC, enacted in 1975, is a refundable federal income tax
credit for low to moderate income working individuals and families.
The federal EITC was enacted in part to offset the burden of social
security taxes and to provide an incentive to work. The EITC can
result in a reduction of taxes owed, and when it exceeds the amount of
taxes owed, it results in a tax refund to those who claim and qualify
for the credit. New York State enacted a companion EITC in 1994, which
is available to individuals who qualify for the federal EITC and
provides them with a State tax credit equal to 30 percent of the
applicable federal EITC. Maximum credits range from $569 for an
individual with no children to as much as $6,217 for a married couple
with two or more children.

The EITC is one of the most effective tools in helping people escape
poverty and transition from public assistance. For example, an
individual working full-time at $8.50 per hour and earning $17,000 per
year could effectively realize more than a 25 percent increase in
income, or an effective hourly rate of $11.39, after receipt of the
state and federal EITC. The EITC, when coupled with other supports
available to low-income families, such food stamps and the low income
home energy assistance program, can lift them out of poverty and off
of public assistance.

Despite the effectiveness of this tool, it is estimated that as many
as 20 percent of those eligible do not claim the credit. To qualify,
taxpayers must meet certain requirements and file a tax return, even
if they did not earn enough money to be obligated to file a return.
This bill aims to ensure that all New York State taxpayers who are
potentially eligible are informed of the EITC at or near the time that
the annual wage statement is provided.

This bill also aims to give employers as much flexibility as possible
in the content, form, and breadth of distribution. For administrative
ease, many employers will choose to provide notice to all taxpayers;
however, employers will have the option of providing notice only to
those individuals whose gross annual incomes do not exceed $60,000 or
the maximum income at which an employee may be eligible for an EITC,
whichever is higher. In addition, employers will have the option of
providing notice by hand delivery, regular mail or electronically.

 BUDGET IMPLICATIONS :

There are no significant fiscal impacts associated with this proposal.

 EFFECTIVE DATE :
This bill would take effect January 1, 2010.

2009-S4258 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4258

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 20, 2009
                               ___________

Introduced by Sens. MONTGOMERY, SQUADRON -- (at request of the Governor)
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Investigations and Government Operations

AN  ACT  to  amend  the  tax  law, in relation to requiring employers to
  provide notice of potential eligibility for federal and New York state
  earned income tax credits

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  6  of subsection (d) of section 606 of the tax
law, as amended by section 3 of part V of chapter  60  of  the  laws  of
2004, is amended to read as follows:
  (6)  Notification.    (I) The commissioner shall periodically, but not
less than every three years, make efforts to alert taxpayers that may be
currently eligible to receive the credit provided under this subsection,
and the  credit  provided  under  any  local  law  enacted  pursuant  to
subsection  (f)  of  section thirteen hundred ten of this chapter, as to
their potential eligibility. In making the determination  of  whether  a
taxpayer  may  be  eligible  for such credit, the commissioner shall use
such data as may be appropriate and available, including, but not limit-
ed to, data available from the United  States  Department  of  Treasury,
Internal  Revenue  Service  and  New  York  state income tax returns for
preceding tax years.
  (II) EXCEPT AS SET FORTH IN CLAUSE (D) OF THIS SUBPARAGRAPH, EMPLOYERS
WITH PERSONS IN THEIR EMPLOY IN  NEW  YORK  STATE  FOR  WHOM  THEY  MUST
PROVIDE  AN  ANNUAL  WAGE  SUMMARY  SHALL EACH YEAR FURNISH TO EACH SUCH
PERSON A NOTICE THAT HE OR SHE MAY BE ELIGIBLE FOR A STATE EARNED INCOME
TAX CREDIT PURSUANT TO THIS SUBSECTION AND A FEDERAL EARNED  INCOME  TAX
CREDIT PURSUANT TO SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE.  FOR
PURPOSES  OF  THIS SUBPARAGRAPH, EMPLOYER SHALL HAVE THE SAME MEANING AS
SET FORTH IN SUBSECTION (A) OF SECTION THREE THOUSAND THREE HUNDRED  SIX
OF THE INTERNAL REVENUE CODE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12026-04-9

S. 4258                             2

  (A)  CONTENTS OF NOTICE. THE NEW YORK STATE DEPARTMENT OF TAXATION AND
FINANCE SHALL PROMULGATE GUIDANCE AS NECESSARY  SPECIFYING  THE  MINIMUM
REQUIREMENTS  OF SUCH NOTICE, WHICH WILL INCLUDE, BUT NOT BE LIMITED TO,
INFORMATION AS TO THE AVAILABILITY OF AND POTENTIAL ELIGIBILITY FOR  THE
FEDERAL  EARNED  INCOME  TAX CREDIT AND THE NEW YORK STATE EARNED INCOME
TAX CREDIT. SUCH NOTICE SHALL REFER PERSONS TO BOTH THE INTERNAL REVENUE
SERVICE AND THE NEW YORK STATE DEPARTMENT OF  TAXATION  AND  FINANCE  BY
TELEPHONE  AND  THROUGH  THEIR WEBSITES FOR INFORMATION REGARDING ANNUAL
ELIGIBILITY THRESHOLDS BY HOUSEHOLD TYPE, FILING REQUIREMENTS,  AND  HOW
TO OBTAIN NECESSARY FORMS AND INSTRUCTIONS.
  (B)  TIMING  OF NOTICE. THE EMPLOYER SHALL PROVIDE THE NOTICE REQUIRED
BY THIS SUBPARAGRAPH WITHIN ONE WEEK BEFORE OR AFTER,  OR  AT  THE  SAME
TIME,  THE  EMPLOYER PROVIDES THE ANNUAL WAGE SUMMARY, INCLUDING BUT NOT
LIMITED TO, A FORM W-2 OR A FORM 1099.  THE  NOTICE  SHALL  BE  PROVIDED
EITHER SEPARATELY OR AS PART OF THE ANNUAL WAGE SUMMARY.
  (C)  MANNER OF PROVIDING NOTICE. THE EMPLOYER SHALL PROVIDE THE NOTICE
REQUIRED BY THIS SUBPARAGRAPH TO EACH PERSON BY HAND DELIVERY, OR  ELEC-
TRONIC MAIL, OR BY MAIL TO THE LAST KNOWN ADDRESS.
  (D)  EMPLOYER'S  OPTION.  AT  THE  EMPLOYER'S OPTION, THE EMPLOYER MAY
CHOOSE TO PROVIDE THE NOTICE REQUIRED PURSUANT TO THIS SUBPARAGRAPH ONLY
TO THOSE EMPLOYEES WHOSE GROSS ANNUAL  INCOMES  EQUAL  OR  EXCEED  SIXTY
THOUSAND  DOLLARS  OR  THE  MAXIMUM  INCOME  AT WHICH AN EMPLOYEE MAY BE
ELIGIBLE FOR THE EARNED INCOME TAX CREDIT, WHICH EVER IS HIGHER.
  S 2. This act shall take effect January 1, 2010.

co-Sponsors

2009-S4258A - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S366
2013-2014: S1375
2015-2016: S1322
2017-2018: S4443

2009-S4258A - Summary

2009-S4258A - Sponsor Memo

                                 BILL NUMBER:  S4258A

 TITLE OF BILL :
An act to amend the tax law, in relation to requiring employers to
provide notice of potential eligibility for federal and New York state
earned income tax credits


 PURPOSE :
This bill would require employers to notify employees that they may be
eligible for a State or federal Earned Income Tax Credit (EITC).

 SUMMARY OF PROVISIONS :
Section 1 of the bill would amend Tax Law § 606(d)(6) to provide that:
(1) employers with persons in their employ in New York State for whom
they must furnish an annual wage summary must furnish to each such
employee a notice that he or she may be eligible for a State or
federal EITC; (2) the Department of Taxation and Finance shall
promulgate guidance specifying the minimum requirements of such
notice; (3) such notice must be furnished with, or within one week
before or after, the annual wage summary; (4) such notice may be
provided by hand delivery, electronic or regular mail; and (5) the
employer may choose to provide notice only to those employees whose
gross incomes do not equal or exceed $60,000, or the maximum income at
which an employee may be eligible for the EITC, whichever is higher.

Section 2 of the bill would provide for an effective date of January
1, 2010.

 EXISTING LAW :
26 V.S.C. § 32 authorizes a federal EITC for eligible individuals and
sets forth the amount of the credit.

Tax Law § 606(d) authorizes a State EITC for individuals who are
eligible for a federal EITC pursuant to 26 V.S.C. § 32, and provides
that the State EITC will be calculated at 30% of the federal EITC.

Tax Law § 606(d)(6) provides that the Commissioner of the Department
of Taxation and Finance must make efforts at least every three years
to notify individuals of their potential eligibility for an EITC.

 JUSTIFICATION :
The federal EITC, enacted in 1975, is a refundable federal income tax
credit for low to moderate income working individuals and families.
The federal EITC was enacted in part to offset the burden of social
security taxes and to provide an incentive to work. The EITC can
result in a reduction of taxes owed, and when it exceeds the amount of
taxes owed, it results in a tax refund to those who claim and qualify
for the credit. New York State enacted a companion EITC in 1994, which
is available to individuals who qualify for the federal BITC and
provides them with a State tax credit equal to 30 percent of the
applicable federal EITC.

Maximum credits range from $569 for an individual with no children to
as much as $6,217 for a married couple with two or more children. The
EITC is one of the most effective tools in helping people escape
poverty and transition from public assistance. For example, an
individual working full-time at $8.50 per hour and earning $17,000 per
year could effectively realize more than a 25 percent increase in
income, or an effective hourly rate of$11.39, after receipt of the
state and federal EITC. The EITC, when coupled with other supports
available to low-income families, such food stamps and the low income
home energy assistance program, can lift them out of poverty and off
of public assistance.


Despite the effectiveness of this tool, it is estimated that as many
as 20 percent of those eligible do not claim the credit. To qualify,
taxpayers must meet certain requirements and file a tax return, even
if they did not earn enough money to be obligated to file a return.
This bill aims to ensure that all New York State taxpayers who are
potentially eligible are informed of the EITC at or near the time that
the annual wage statement is provided.

This bill also aims to give employers as much flexibility as possible
in the content, form, and breadth of distribution. For administrative
ease, many employers will choose to provide notice to all taxpayers;
however, employers will have the option of providing notice only to
those individuals whose gross annual incomes do not exceed $60,000 or
the maximum income at which an employee may be eligible for an EITC,
whichever is higher. In addition, employers will have the option of
providing notice by hand delivery, regular mail or electronically.

 BUDGET IMPLICATIONS :
There are no significant fiscal impacts associated with this proposal.

 EFFECTIVE DATE :
This bill would take effect January 1, 2010.

2009-S4258A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4258--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 20, 2009
                               ___________

Introduced by Sens. MONTGOMERY, SQUADRON -- (at request of the Governor)
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Investigations and Government Operations -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  tax  law, in relation to requiring employers to
  provide notice of potential eligibility for federal and New York state
  earned income tax credits

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  6  of subsection (d) of section 606 of the tax
law, as amended by section 3 of part V of chapter  60  of  the  laws  of
2004, is amended to read as follows:
  (6)  Notification.    (I) The commissioner shall periodically, but not
less than every three years, make efforts to alert taxpayers that may be
currently eligible to receive the credit provided under this subsection,
and the  credit  provided  under  any  local  law  enacted  pursuant  to
subsection  (f)  of  section thirteen hundred ten of this chapter, as to
their potential eligibility. In making the determination  of  whether  a
taxpayer  may  be  eligible  for such credit, the commissioner shall use
such data as may be appropriate and available, including, but not limit-
ed to, data available from the United  States  Department  of  Treasury,
Internal  Revenue  Service  and  New  York  state income tax returns for
preceding tax years.
  (II) EXCEPT AS SET FORTH IN CLAUSE (D) OF THIS SUBPARAGRAPH, EMPLOYERS
WITH PERSONS IN THEIR EMPLOY IN  NEW  YORK  STATE  FOR  WHOM  THEY  MUST
PROVIDE  AN  ANNUAL  WAGE  SUMMARY  SHALL EACH YEAR FURNISH TO EACH SUCH
PERSON A NOTICE THAT HE OR SHE MAY BE ELIGIBLE FOR A STATE EARNED INCOME
TAX CREDIT PURSUANT TO THIS SUBSECTION AND A FEDERAL EARNED  INCOME  TAX
CREDIT PURSUANT TO SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE.  FOR
PURPOSES  OF  THIS SUBPARAGRAPH, EMPLOYER SHALL HAVE THE SAME MEANING AS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12026-05-9

S. 4258--A                          2

SET FORTH IN SUBSECTION (A) OF SECTION THREE THOUSAND THREE HUNDRED  SIX
OF THE INTERNAL REVENUE CODE.
  (A)  CONTENTS OF NOTICE. THE NEW YORK STATE DEPARTMENT OF TAXATION AND
FINANCE SHALL PROMULGATE GUIDANCE AS NECESSARY  SPECIFYING  THE  MINIMUM
REQUIREMENTS  OF SUCH NOTICE, WHICH WILL INCLUDE, BUT NOT BE LIMITED TO,
INFORMATION AS TO THE AVAILABILITY OF AND POTENTIAL ELIGIBILITY FOR  THE
FEDERAL  EARNED  INCOME  TAX CREDIT AND THE NEW YORK STATE EARNED INCOME
TAX CREDIT. SUCH NOTICE SHALL REFER PERSONS TO BOTH THE INTERNAL REVENUE
SERVICE AND THE NEW YORK STATE DEPARTMENT OF  TAXATION  AND  FINANCE  BY
TELEPHONE  AND  THROUGH  THEIR WEBSITES FOR INFORMATION REGARDING ANNUAL
ELIGIBILITY THRESHOLDS BY HOUSEHOLD TYPE, FILING REQUIREMENTS,  AND  HOW
TO OBTAIN NECESSARY FORMS AND INSTRUCTIONS.
  (B)  TIMING  OF NOTICE. THE EMPLOYER SHALL PROVIDE THE NOTICE REQUIRED
BY THIS SUBPARAGRAPH WITHIN ONE WEEK BEFORE OR AFTER,  OR  AT  THE  SAME
TIME,  THE  EMPLOYER PROVIDES THE ANNUAL WAGE SUMMARY, INCLUDING BUT NOT
LIMITED TO, A FORM W-2 OR A FORM 1099.  THE  NOTICE  SHALL  BE  PROVIDED
EITHER SEPARATELY OR AS PART OF THE ANNUAL WAGE SUMMARY.
  (C)  MANNER OF PROVIDING NOTICE. THE EMPLOYER SHALL PROVIDE THE NOTICE
REQUIRED BY THIS SUBPARAGRAPH TO EACH PERSON BY HAND DELIVERY, OR  ELEC-
TRONIC MAIL, OR BY MAIL TO THE LAST KNOWN ADDRESS.
  (D)  EMPLOYER'S  OPTION.  AT  THE  EMPLOYER'S OPTION, THE EMPLOYER MAY
CHOOSE TO PROVIDE THE NOTICE REQUIRED PURSUANT TO THIS SUBPARAGRAPH ONLY
TO THOSE EMPLOYEES WHOSE GROSS ANNUAL INCOMES DO  NOT  EQUAL  OR  EXCEED
SIXTY THOUSAND DOLLARS OR THE MAXIMUM INCOME AT WHICH AN EMPLOYEE MAY BE
ELIGIBLE FOR THE EARNED INCOME TAX CREDIT, WHICH EVER IS HIGHER.
  S 2. This act shall take effect January 1, 2010.

co-Sponsors

2009-S4258B (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S366
2013-2014: S1375
2015-2016: S1322
2017-2018: S4443

2009-S4258B (ACTIVE) - Summary

2009-S4258B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4258B

 TITLE OF BILL :
An act to amend the tax law, in relation to requiring employers to
provide notice of potential eligibility for federal and New York state
earned income tax credits


 PURPOSE :
This bill would require employers to notify employees that they may be
eligible for a State or federal Earned Income Tax Credit (EITC).

 SUMMARY OF PROVISIONS :
Section 1 of the bill would amend Tax Law § 606(d)(6) to provide that:
(1) employers with persons in their employ in New York State for whom
they must furnish an annual wage summary must furnish to each such
employee a notice that he or she may be eligible for a State or
federal EITC; (2) the Department of Taxation and Finance shall
promulgate guidance specifying the minimum requirements of such
notice; (3) such notice must be furnished with, or within one week
before or after, the annual wage summary; (4) such notice may be
provided by hand delivery, electronic or regular mail; and (5) the
employer may choose to provide notice only to those employees whose
gross incomes do not equal or exceed $60,000, or the maximum income at
which an employee may be eligible for the EITC, whichever is higher.

Section 2 of the bill would provide for an effective date of January
1, 2010.

 EXISTING LAW :
26 V.S.C. § 32 authorizes a federal EITC for eligible individuals and
sets forth the amount of the credit.

Tax Law § 606(d) authorizes a State EITC for individuals who are
eligible for a federal EITC pursuant to 26 V.S.C. § 32, and provides
that the State EITC will be calculated at 30% of the federal EITC.

Tax Law § 606(d)(6) provides that the Commissioner of the Department
of Taxation and Finance must make efforts at least every three years
to notify individuals of their potential eligibility for an EITC.

 JUSTIFICATION :
The federal EITC, enacted in 1975, is a refundable federal income tax
credit for low to moderate income working individuals and families.
The federal EITC was enacted in part to offset the burden of social
security taxes and to provide an incentive to work. The EITC can
result in a reduction of taxes owed, and when it exceeds the amount of
taxes owed, it results in a tax refund to those who claim and qualify
for the credit. New York State enacted a companion EITC in 1994, which
is available to individuals who qualify for the federal BITC and
provides them with a State tax credit equal to 30 percent of the
applicable federal EITC.

Maximum credits range from $569 for an individual with no children to
as much as $6,217 for a married couple with two or more children. The
EITC is one of the most effective tools in helping people escape
poverty and transition from public assistance. For example, an
individual working full-time at $8.50 per hour and earning $17,000 per
year could effectively realize more than a 25 percent increase in
income, or an effective hourly rate of $11.39, after receipt of the
state and federal EITC. The EITC, when coupled with other supports
available to low-income families, such food stamps and the low income
home energy assistance program, can lift them out of poverty and off
of public assistance.


Despite the effectiveness of this tool, it is estimated that as many
as 20 percent of those eligible do not claim the credit. To qualify,
taxpayers must meet certain requirements and file a tax return, even
if they did not earn enough money to be obligated to file a return.
This bill aims to ensure that all New York State taxpayers who are
potentially eligible are informed of the EITC at or near the time that
the annual wage statement is provided.

This bill also aims to give employers as much flexibility as possible
in the content, form, and breadth of distribution. For administrative
ease, many employers will choose to provide notice to all taxpayers;
however, employers will have the option of providing notice only to
those individuals whose gross annual incomes do not exceed $60,000 or
the maximum income at which an employee may be eligible for an EITC,
whichever is higher. In addition, employers will have the option of
providing notice by hand delivery, regular mail or electronically.

 BUDGET IMPLICATIONS :
There are no significant fiscal impacts associated with this proposal.

 EFFECTIVE DATE :
This bill would take effect January 1, 2011.

2009-S4258B (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4258--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 20, 2009
                               ___________

Introduced  by  Sens.  MONTGOMERY,  SQUADRON  --  read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations  and  Government  Operations  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee -- recommitted to the Committee on Investigations  and  Government
  Operations  in  accordance  with  Senate  Rule  6, sec. 8 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the tax law,  in  relation  to  requiring  employers  to
  provide notice of potential eligibility for federal and New York state
  earned income tax credits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 6 of subsection (d) of section  606  of  the  tax
law,  as  amended  by  section  3 of part V of chapter 60 of the laws of
2004, is amended to read as follows:
  (6) Notification.  (I) The commissioner shall  periodically,  but  not
less than every three years, make efforts to alert taxpayers that may be
currently eligible to receive the credit provided under this subsection,
and  the  credit  provided  under  any  local  law  enacted  pursuant to
subsection (f) of section thirteen hundred ten of this  chapter,  as  to
their  potential  eligibility.  In making the determination of whether a
taxpayer may be eligible for such credit,  the  commissioner  shall  use
such data as may be appropriate and available, including, but not limit-
ed  to,  data  available  from the United States Department of Treasury,
Internal Revenue Service and New  York  state  income  tax  returns  for
preceding tax years.
  (II) EXCEPT AS SET FORTH IN CLAUSE (D) OF THIS SUBPARAGRAPH, EMPLOYERS
WITH  PERSONS  IN  THEIR  EMPLOY  IN  NEW  YORK STATE FOR WHOM THEY MUST
PROVIDE AN ANNUAL WAGE SUMMARY SHALL EACH  YEAR  FURNISH  TO  EACH  SUCH
PERSON A NOTICE THAT HE OR SHE MAY BE ELIGIBLE FOR A STATE EARNED INCOME

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12026-08-0

S. 4258--B                          2

TAX  CREDIT  PURSUANT TO THIS SUBSECTION AND A FEDERAL EARNED INCOME TAX
CREDIT PURSUANT TO SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE.  FOR
PURPOSES OF THIS SUBPARAGRAPH, EMPLOYER SHALL HAVE THE SAME  MEANING  AS
SET  FORTH IN SUBSECTION (A) OF SECTION THREE THOUSAND THREE HUNDRED SIX
OF THE INTERNAL REVENUE CODE.
  (A) CONTENTS OF NOTICE. THE NEW YORK STATE DEPARTMENT OF TAXATION  AND
FINANCE  SHALL  PROMULGATE  GUIDANCE AS NECESSARY SPECIFYING THE MINIMUM
REQUIREMENTS OF SUCH NOTICE, WHICH WILL INCLUDE, BUT NOT BE LIMITED  TO,
INFORMATION  AS TO THE AVAILABILITY OF AND POTENTIAL ELIGIBILITY FOR THE
FEDERAL EARNED INCOME TAX CREDIT AND THE NEW YORK  STATE  EARNED  INCOME
TAX CREDIT. SUCH NOTICE SHALL REFER PERSONS TO BOTH THE INTERNAL REVENUE
SERVICE  AND  THE  NEW  YORK STATE DEPARTMENT OF TAXATION AND FINANCE BY
TELEPHONE AND THROUGH THEIR WEBSITES FOR  INFORMATION  REGARDING  ANNUAL
ELIGIBILITY  THRESHOLDS  BY HOUSEHOLD TYPE, FILING REQUIREMENTS, AND HOW
TO OBTAIN NECESSARY FORMS AND INSTRUCTIONS.
  (B) TIMING OF NOTICE. THE EMPLOYER SHALL PROVIDE THE  NOTICE  REQUIRED
BY  THIS  SUBPARAGRAPH  WITHIN  ONE WEEK BEFORE OR AFTER, OR AT THE SAME
TIME, THE EMPLOYER PROVIDES THE ANNUAL WAGE SUMMARY, INCLUDING  BUT  NOT
LIMITED  TO,  A  FORM  W-2  OR A FORM 1099. THE NOTICE SHALL BE PROVIDED
EITHER SEPARATELY OR AS PART OF THE ANNUAL WAGE SUMMARY.
  (C) MANNER OF PROVIDING NOTICE. THE EMPLOYER SHALL PROVIDE THE  NOTICE
REQUIRED  BY THIS SUBPARAGRAPH TO EACH PERSON BY HAND DELIVERY, OR ELEC-
TRONIC MAIL, OR BY MAIL TO THE LAST KNOWN ADDRESS.
  (D) EMPLOYER'S OPTION. AT THE  EMPLOYER'S  OPTION,  THE  EMPLOYER  MAY
CHOOSE TO PROVIDE THE NOTICE REQUIRED PURSUANT TO THIS SUBPARAGRAPH ONLY
TO  THOSE  EMPLOYEES  WHOSE  GROSS ANNUAL INCOMES DO NOT EQUAL OR EXCEED
SIXTY THOUSAND DOLLARS OR THE MAXIMUM INCOME AT WHICH AN EMPLOYEE MAY BE
ELIGIBLE FOR THE EARNED INCOME TAX CREDIT, WHICH EVER IS HIGHER.
  S 2. This act shall take effect January 1, 2011.

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Senate Bill S4258

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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2009-S4258 - Details

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Sponsored By

Velmanette Montgomery

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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Daniel L. Squadron

2009-S4258 - Details

2009-S4258 - Summary

2009-S4258 - Sponsor Memo

2009-S4258 - Bill Text download pdf

co-Sponsors

Daniel L. Squadron

2009-S4258A - Details

2009-S4258A - Summary

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co-Sponsors

Daniel L. Squadron

2009-S4258B (ACTIVE) - Details

2009-S4258B (ACTIVE) - Summary

2009-S4258B (ACTIVE) - Sponsor Memo

2009-S4258B (ACTIVE) - Bill Text download pdf

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